The maximum amount of share capital that a company can issue, stated in the Memorandum of Association is called “the authorised share capital”; instead the amount of shares actually hold by shareholders is called “Issued share capital”.

2- How do lawyers fit in with the study of Company law i.e. Capitalization- work closely with their client companies before the shares are issued, to ensure the right balance between shareholder rights and responsibilities;- advise their clients on the legal procedures for issuing, buying or selling shares;- draft a shareholders’ agreement ( a contract among shareholders ) and a share certificates;- advise potential shareholders before they invest in a company;- be called on by both sides in the event of any conflict or misunderstanding between one shareholder and another, or between shareholders and the company’s management